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GCC was formed in 1981 with its members including; Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, and United Arab Emirates. This is an integrated and interconnected multipurpose organization that seeks to unite its member-states The GCC is a multi purpose organization seeking integration and interconnection between the member states. The economic agenda forms the foundation of this organization although it also deals with some other issues that includes; economical, political, regional, organization, security and social issues (Goliath, 2010). At the initial stages the member states drafted its structure, the objectives, its functions and the rules to govern it.

Single market

The members came up with an agreement to establish a single common market.In 1983 a Free Trade Area was established with the elimination of tariffs on goods that are of national origin.In 2003 the custom union was set up and the common customs was agreed to be 5% on the foreign goods that would be imported from outside. Under the new economic agreement, the areas that requires equality among the member states has been specified in Article three. These include:The granting of equal treatment to all the GCC nationals irrespective of their residence and member states.Work both in the private & government sectors.Education.Property ownership.Professionalism and occupational practices.Health and social services.Stock market and exchange.

The benefits from this single market include; the changes in the relative prices of the commodities with the removal of barriers; reduction in monopoly; high scale economy.Monetary unionBenefitsReduced Forex costs.Elimination in the exchange rate risk.Transparency in pricing.Increased competition.Economic growth and fostered trade.CostsControl over domestic monetary causes leads to loss of national soverenity.Restrictions on the individual member's budgetary policies.The implementation of economic integration will strengthen the internal ties and boost the GCC economies. The six GCC member countries have similarities which include common borders; citizens have common cultural practices, religion, language and the traditional practices (Aziz, 2004). However the lack of diversified economies and the differences in public debts and budget deficits poses a major threat to the success of the GCC.

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